Question
How to complete year end adjusting entries for the following ? Inventory: periodic, FIFO for both baking and merchandise ~baking supplies $27,850 ending inventory Equipment:
How to complete year end adjusting entries for the following ?
Inventory: periodic, FIFO for both baking and merchandise
~baking supplies $27,850 ending inventory
Equipment: straight lie method used for equipment
~mixing machine :$5k initial cost, $500 salvage value, 3rd year of use of 7 total ($642.86 per year)
~Ovens: $8k initial cost, $1000 salvage value, 3rd year of use of 7 total ($1000 per year)
~Other depreciable equipment: $4000 initial cost, $0 salvage value, 1st year of use of 4 total ($1000 per year)
~Bakery leasehold improvements: $10,000, 2nd year of use ($2000 per year)
~trademark for company name: $2300 initial cost, 3rd year of use
Office supplies: Periodic, FIFO ending balance $250
Pay period is every 2 weeks. Last pay period ended Dec 27, 2017
~60 employees with a daily pay of $5700, all receive pay through Dec 31
Financing:
~6% interest note payable was made on January 31, 2017, and is due Feb 1, 2019
~5year loan was made on June 1, 2017. Terms are 7.5% annual rate, interest only until due date
Insurance: Annual policy covers 12 months, purchased in February, covering March 2017-February 2018. No monthly adjustments have been made
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